Royal Bank of Canada Purchases 8,932 Shares of Paycom Software, Inc. $PAYC

Key Points

• Royal Bank of Canada has increased its holdings in Paycom Software by 3.8% during the first quarter, now owning approximately 0.42% of the company valued at $53.17 million.
• Several other institutional investors, including Brooklyn Investment Group and Commerce Bank, have also recently adjusted their stakes in Paycom Software, indicating strong institutional interest with 87.77% of the company's stock owned by such entities.
• Paycom Software reported strong quarterly earnings, with a net margin of 21.22% and revenue of $483.6 million, exceeding analyst estimates and marking a 10.5% year-over-year growth.

Royal Bank of Canada raised its position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 3.8% in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 243,375 shares of the software maker's stock after buying an additional 8,932 shares during the period. Royal Bank of Canada owned about 0.42% of Paycom Software worth $53,173,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Sylebra Capital LLC increased its position in shares of Paycom Software by 63.8% during the fourth quarter. Sylebra Capital LLC now owns 3,215,085 shares of the software maker's stock valued at $658,996,000 after buying an additional 1,252,617 shares during the period. Baillie Gifford & Co. increased its position in shares of Paycom Software by 1,918.4% during the first quarter. Baillie Gifford & Co. now owns 1,584,493 shares of the software maker's stock valued at $346,180,000 after buying an additional 1,505,990 shares during the period. Invesco Ltd. increased its position in shares of Paycom Software by 5.0% during the first quarter. Invesco Ltd. now owns 1,233,057 shares of the software maker's stock valued at $269,398,000 after buying an additional 58,176 shares during the period. Northern Trust Corp increased its position in shares of Paycom Software by 2.3% during the first quarter. Northern Trust Corp now owns 740,385 shares of the software maker's stock valued at $161,759,000 after buying an additional 16,369 shares during the period. Finally, Charles Schwab Investment Management Inc. increased its stake in shares of Paycom Software by 0.9% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 502,345 shares of the software maker's stock worth $109,752,000 after acquiring an additional 4,272 shares in the last quarter. Hedge funds and other institutional investors own 87.77% of the company's stock.

Insider Buying and Selling

In other Paycom Software news, insider Bradley Scott Smith sold 1,500 shares of the stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $249.96, for a total transaction of $374,940.00. Following the completion of the transaction, the insider owned 27,233 shares in the company, valued at $6,807,160.68. This trade represents a 5.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 10.90% of the stock is owned by company insiders.

Paycom Software Trading Down 0.9%

Shares of NYSE:PAYC traded down $2.04 during midday trading on Tuesday, reaching $222.26. 589,424 shares of the company were exchanged, compared to its average volume of 626,475. The stock has a market cap of $12.86 billion, a PE ratio of 30.08, a price-to-earnings-growth ratio of 2.46 and a beta of 0.81. The business's fifty day moving average is $227.77 and its two-hundred day moving average is $229.59. Paycom Software, Inc. has a one year low of $158.03 and a one year high of $267.76.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its earnings results on Wednesday, August 6th. The software maker reported $2.06 earnings per share for the quarter, beating the consensus estimate of $1.78 by $0.28. The company had revenue of $483.60 million during the quarter, compared to analysts' expectations of $472.00 million. Paycom Software had a net margin of 21.22% and a return on equity of 25.40%. Paycom Software's quarterly revenue was up 10.5% on a year-over-year basis. During the same period last year, the company posted $1.62 earnings per share. As a group, sell-side analysts expect that Paycom Software, Inc. will post 7.15 EPS for the current year.

Paycom Software Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 8th. Shareholders of record on Monday, August 25th were given a dividend of $0.375 per share. The ex-dividend date was Monday, August 25th. This represents a $1.50 annualized dividend and a yield of 0.7%. Paycom Software's dividend payout ratio (DPR) is 20.30%.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. JPMorgan Chase & Co. lifted their price target on shares of Paycom Software from $215.00 to $235.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. BMO Capital Markets increased their price objective on Paycom Software from $244.00 to $258.00 and gave the company a "market perform" rating in a research report on Thursday, August 7th. KeyCorp increased their price objective on shares of Paycom Software from $285.00 to $290.00 and gave the company an "overweight" rating in a research report on Thursday, August 7th. Barclays increased their price target on Paycom Software from $240.00 to $250.00 and gave the company an "equal weight" rating in a report on Thursday, August 7th. Finally, Cantor Fitzgerald started coverage on Paycom Software in a report on Thursday, August 14th. They set a "neutral" rating and a $230.00 price target on the stock. One equities research analyst has rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $234.36.

Paycom Software Company Profile

Paycom Software, Inc provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.